Health Alliance Plan and CareSource Formalize Joint Venture Agreement in Michigan

Community News |May 16, 2023|4 min read
  • The entities are joining forces to provide expansive access to quality care for more Medicaid beneficiaries across Michigan.
  • Definitive agreement will now undergo regulatory approval process as the partners continue to work through operational details.

DETROIT, May 4, 2023 – Health Alliance Plan (HAP), a Michigan-based nonprofit health plan, and CareSource, an Ohio-based nonprofit and managed care health plan with members in seven states, signed a definitive agreement on April 21, 2023 to form a joint venture entity focusing on Medicaid products through HAP Empowered. The closing of the transactions contemplated by the definitive agreement is anticipated to occur in the third quarter of 2023 following receipt of the required regulatory approvals. HAP and CareSource are coming together to provide expansive and higher quality health care coverage to more Michigan residents through a combined Medicaid offering and planned re-entry to the Health Care Marketplace.

The HAP and CareSource joint venture will help Michiganders gain access to high-quality, national-scale care with a strong local presence. HAP, one of the most trusted names in Michigan health insurance, currently provides Medicaid coverage to 43,000 HAP Empowered members in Michigan, along with Medicare Advantage and commercial plans. CareSource, one of the nation’s largest managed Medicaid organizations, serves more than 2.3 million members in Ohio, Indiana, Kentucky, Georgia, Arkansas, North Carolina and West Virginia including Medicaid, Health Insurance Marketplace and Medicare products.

HAP, a fully owned entity of Henry Ford Health, has a critical understanding of the provider-payer relationship and has continued its Michigan expansion over several years. Dr. Michael Genord, president and CEO of HAP, and Erhardt Preitauer, president and CEO of CareSource, describe the alliance as grounded in opportunity. By joining two non-profit organizations, HAP and CareSource are extending and enhancing a mission-based legacy of offering comprehensive health coverage, providing access to the high-quality physicians and delivering compassion and care.

HAP is widely recognized in Michigan for its community engagement programs including an ongoing partnership with the Detroit Public School Community District and as the long-standing primary sponsor of the HAP Crim Festival of Races in Flint. Its community investment focuses on improving social determinants of health, specifically addressing homelessness, food insecurity and physical activity. CareSource, with its people-first approach, is recognized for its deep community engagement across markets focused on improving health outcomes and conditions for low-income, underserved populations including awarding millions in grants annually to community organizations and an award-winning prescriber outreach program aimed at reducing opioid prescription dependence.

Citigroup served as financial advisor to HAP in the transaction.


About Health Alliance Plan

Health Alliance Plan (HAP) is a Michigan-based, nonprofit health plan that provides health coverage to individuals and companies of all sizes. For more than 60 years, HAP has partnered with leading doctors and hospitals, employers and community organizations to enhance the health and well-being of the lives it touches. HAP offers a product portfolio with six distinct product lines: Group Insured Commercial, Individual, Medicare, Medicaid (using the HAP Empowered name), Self-Funded and Network Leasing. HAP excels in delivering award-winning preventive services, disease management and wellness programs, as well as personalized customer service. For more information, visit


About CareSource

CareSource is a nonprofit, nationally recognized managed care organization with over 2.3 million members. Headquartered in Dayton, Ohio since its founding in 1989, CareSource administers one of the largest Medicaid managed care plans in the U.S. The organization offers health insurance, including Medicaid, Health Insurance Marketplace and Medicare products. As a mission-driven organization, CareSource is transforming health care with innovative programs that address the social determinants of health, health equity, prevention and access to care. For more information, visit:, follow @CareSource on Twitter, or like CareSource on Facebook.